Moving average technical indicators
Moving average (MA for short) is a method of statistical analysis to obtain a moving average by averaging prices over a certain period of time and connecting the average values over different periods of time. The moving average is one of the technical indicators used to observe price fluctuations. It can help investors confirm existing price trends, judge potential future price trends, and find signals that prices are about to reverse.
Here I have selected a stock as a reference.
$Berkshire Hathaway-B (BRK.B.US)$
Here are my observations:
Here I used the 5-day, 60-day, and 250-day moving averages.
Decline signal
The red circle 2-moving average rises and then falls. When the short-term moving average falls below the long-term moving average, this is a signal to sell.
Red circle 4- There is a high possibility that the stock price will fall to the moving average after a sudden sharp rise in stock prices.
upward trend
Green circle 1 - the short-term moving average is above the long-term moving average
The decline in the green circle 3-average line gradually stabilizes. When the stock price is above the average line, this is an upward sign.
Green Circle 5 & 6- The stock price suddenly plummeted far below the moving average. The stock price deviated too much from the moving average, and there is a high possibility that the stock price will rebound.
Basically, stock prices are above the 250-day EMA, so you can buy them for long-term investments.
Here I have selected a stock as a reference.
$Berkshire Hathaway-B (BRK.B.US)$
Here are my observations:
Here I used the 5-day, 60-day, and 250-day moving averages.
Decline signal
The red circle 2-moving average rises and then falls. When the short-term moving average falls below the long-term moving average, this is a signal to sell.
Red circle 4- There is a high possibility that the stock price will fall to the moving average after a sudden sharp rise in stock prices.
upward trend
Green circle 1 - the short-term moving average is above the long-term moving average
The decline in the green circle 3-average line gradually stabilizes. When the stock price is above the average line, this is an upward sign.
Green Circle 5 & 6- The stock price suddenly plummeted far below the moving average. The stock price deviated too much from the moving average, and there is a high possibility that the stock price will rebound.
Basically, stock prices are above the 250-day EMA, so you can buy them for long-term investments.
The support price of the moving average can be used as the price to buy or sell.
Technical indicators provide an important perspective in due diligence, but they aren't always 100% accurate.
Normally, it is difficult for investors to quickly and accurately determine the best time to enter the market by relying on moving averages alone, and they need to be used in combination with other technical indicators such as the RSI indicator (relative strength index) and the MACD indicator (index smooth variance average); in a consolidated market, the buying and selling signals of moving averages appear frequently, causing investors to be confused and even misled.
I'm also studying, so I don't know if the above opinions are correct. Let's all discuss it together.
I'm studying here @Moomoo Courses @Course TA Cici
https://live.moomoo.com/course/1336?lang=zh-cn&data_ticket=f1dd4799f3f97cac7bff22fdc9e19726
Update: I've added one more stock as a study reference $Verizon (VZ.US)$ , everyone is welcome to discuss it together.
1.Daily K-line chart- By looking at the daily K-line chart (first chart), I found that this stock is in a declining state. Currently, the MA moving average is moving downward and the stock price has fallen below MA250.
2.Weekly K-line chart- Let's look at the weekly K line (second chart). You can observe a rebound when the stock price falls to MA250 (the bottom of the chart), indicating that there is a lot of resistance at MA250. At the last two red candlesticks, you can see that the stock price and the MA moving average fell after rebounding, and the current resistance is at MA250. What if the stock price falls below MA250? Let's take a look at the third chart.
3.Monthly K-line chart- For long-term investments, this stock can be bought (MA60 and MA250 are still moving upward). In the short term, this stock is in a declining state. Currently MA5 and MA10 are moving downward, but by looking at the third chart, you can see that there is a lot of resistance at MA60, so you can consider buying at MA60.
4. You can think of the price of each MA moving average as the price you buy and then sell. When the stock price falls to the moving average and rebounds, it means that there is great resistance at this moving average. When the stock price falls below the moving average, then its next resistance is the next moving average. For example, if the stock price falls below MA60, then its next resistance is MA250. You can consider buying at MA250. Conversely, when the stock price rises above the moving average, you can set the price of the above moving average as the selling price.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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steady Pom pipi OP : Huh, I've finally finished writing it! There is a flash back all the time, and the written text is gone. I don't know if it's an internet problem.
steady Pom pipi OP :
steady Pom pipi OP : So nervous I forgot to add emojis to the article this time! It's just not my style.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Meta Moo : precise analysis, great work!![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
steady Pom pipi OP Meta Moo :
虎猪密友 : Excuse me, when can I use EMA and MA? I'm a little confused about this point. Thank you.
steady Pom pipi OP 虎猪密友 : https://www.moomoo.com/hans/community/feed/107966949556230?lang_code=0
For traders who like high-volatility market trading or intraday trends, EMA is more suitable because it reacts faster than MA, but it is vulnerable to misinformation.
I am not very familiar with EMA indicators, this is only my personal point of view, not investment advice.
steady Pom pipi OP : Update-I added another stock$Verizon (VZ.US)$As a reference study, welcome to discuss it together.
虎猪密友 steady Pom pipi OP : Thank you for your advice.
kris_ steady Pom pipi OP : Hello, I'm a moo worker. I'm sorry for the inconvenience.
Where did you encounter the situation where "the written text is missing" in ios/Android/PC/Mac/web?
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